Iran Oil Co Invests in New Phases at South Pars

An Iranian oil official says the development contract of phases 27 and 28 of South Pars gas field, located in the Persian Gulf in southern Iran, will be signed soon.

"The contract, valued at $5.6 billion, is expected to be signed in two weeks time," Gholamreza Manuchehri, the CEO of Iranian oil and gas company Petropars said, Iranian TV's website reported.

Phases 27 and 28 development at South Pars gas field was assigned to Petropars. Petropars is a subsidiary of Naftiran Intertrade Company (NICO), which is itself an affiliated company of the National Iranian Oil Company (NIOC).

"The two phases are expected to produce 2 billion cubic feet of natural gas per day and around 80,000 barrels per day of condensate," Manuchehri said.

He added that the NIOC will invest in the project in the form of "finance."

South Pars, the world's largest reservoir of gas, is shared by Iran and Qatar. The Iranian part is divided into 28 phases.

Iran has the world's second largest gas reserves, almost 16 percent of the world's total.